Vietnam, the world’s second largest exporter of rice lifted a three-month freeze on rice exports after authorities projected an increase in the country’s rice harvest this year. Prime Minister Nguyen Tan Dung has urged traders through the government’s official website to increase rice exports to set aside all un-milled rice on stock of farmers, and help to enhance rice supplies to the world market.
The government had temporarily imposed ban in March and prevented traders from committing on new rice export contracts. This in turn put breaks on the rice exports from the country between January and September to a low of 3.5 million tons. Government had earlier admitted owing to uncertainties related to rice shortages and rising food prices they were forced to take the drastic measure then. The south-east Asian country has hiked this year’s export target to 4.5 million metric tons from 3.5 million as prices were reasonable enough for farmers to make profit and increase supply, Prime Minister Nguyen Tan Dung said in the communiqué.
The fear psychosis which followed after food prices of the US reached an all time high in April, alerted several grain producing nations to lay emphasis on food production and procurement to improve domestic supply, and thereby contain inflation. During the same period many rice exporting nations had suspended their exports to avoid any political unrest in their respective countries. As a result of improvement in harvest, some nations have lifted ban on superior varieties of rice, including India.
Thailand, the world’s biggest rice shipper is expected to harvest about 30 percent more from its second crop and higher prices for the produce have renewed interest in farmers to invest more in plantings. Rice output is estimated to increase the harvest at about 9 million tons for the May-to-June quarter, the Thailand Office of Agricultural Economics declared on its official website. The farm ministry of India said, the half yearly harvest results are encouraging and the output has increased from last year’s 93.4 million to 95.7 million tons. Encouraging reports from major rice producing nations is signaling world food prices to stabilize in the coming months.